Saturday 15 December 2007 07.16 EST
First published on Saturday 15 December 2007 07.16 EST

Britain's biggest contribution to the World Bank's fight against global poverty came under fire from aid agencies last night after the development secretary, Douglas Alexander, refused to attach strings to the £2bn-plus handed to the Washington-based institution.

Development charities welcomed the 49% increase in the funding to help the world's poorest countries but said Alexander should have made a chunk of the money contingent on the Bank easing the economic conditions it attaches to loans.

George Gelber of Cafod, the Catholic Agency for Overseas Development, said the UK had "missed a golden opportunity to challenge the World Bank to stop forcing harmful economic policies on poor countries".

Oxfam's Phil Bloomer said that while the aid was "vital and welcome" it should have been given with a strong message and incentive for reform.

"The UK government missed a key chance to press the World Bank to change," he said. "Billions of pounds of UK taxpayers' money are being handed over to an institution that still pushes some policies on poor countries that destroy development opportunities for poor people.

"The UK should have held back some of its funding until the World Bank changes its spots."

Yesterday's announcement from the Department for International Development means that Britain will provide about 10% of the funding for the World Bank's International Development Association (IDA), which provides soft loans to poor countries.

Each round of funding lasts for three years, and the World Bank said yesterday that it had received pledges worth more than $41bn (£20bn) for the 15th round of IDA funding.

Alexander said: "The UK plays a leading role in fighting world poverty and our contribution to IDA demonstrates our commitment to increase aid to the world's poorest countries.

"The World Bank is the most effective multilateral development institution and plays a critical role in helping accelerate progress towards the [UN's] millennium development goals."

Romilly Greenhill, senior policy adviser at ActionAid, said: "Previously, we applauded the UK government for standing up to the World Bank bullies and making some of their funding contingent on ending this harmful practice. Now, it seems they have joined the same gang."

Robert Zoellick, president of the World Bank, said: "I am grateful to the UK for its commitment to IDA and to aid effectiveness - an objective to which the World Bank group are equally committed."